Destron, Inc.

About Destron, Inc.

MGM Resorts International is one of the world's largest gaming
firms. The company's properties include some of the biggest names
on the Las Vegas Strip, including MGM Grand, The Mirage, and the
Monte Carlo, as well as Luxor, Bellagio, Mandalay Bay, and the new
T-Mobile Arena. MGM Resorts International also owns or has a stake
in other casinos in Nevada, as well as in Michigan (MGM Grand
Detroit) and Mississippi (Beau Rivage). Internationally, it
operates in Macau, an autonomous Chinese territory famed for
gambling. MGM Resorts has a controlling stake in MGM Growth
Properties, which it spun off in 2016 to hold 11 hotel and casino
properties, including several in Las Vegas.

Operations

MGM Resorts International's hotels boast a combined 47,900
rooms, of which 41,400 are held by its domestic hotels, 5,900 by
its CityCenter joint venture, and 600 by its Macau operations. It
also has more than 2 million square feet of casino space, more than
27,000 slot machines, and nearly 1,900 gaming tables.

MGM's casino operations generate around half its total revenue,
its hotel rooms generate 20%, and food and drink brings in
15%.

Geographic Reach

MGM Resort Internationals' two main reportable segments are
based on the regions in which it operates: Domestic Resorts and MGM
China. MGM Resorts' China operations consist of two sites in Macau:
MGM Macau resort and casino and MGM Cotai, a casino, hotel, and
entertainment resort on the Cotai strip. Domestic Resorts accounts
for more than 75% of sales, while MGM China accounts for 20% (a
Corporate segment occupies the remainder).

Sales and Marketing

MGM Resorts International advertises on the radio, television,
internet, billboards, and in newspapers and magazines in selected
cities throughout the US and overseas. MGM Resorts also uses direct
mail and social media to reach out to past guests and potential
customers. The company advertises through regional marketing
offices located in major cities.

Financial Performance

MGM Resorts International has struggled to meaningfully grow its
revenue over the last five years -- up one year and down the next
-- while profits are slim. However fiscal 2017 could be something
of a breakthrough, with acquisitions fueling record revenue
figures.

In 2017 revenue increased 14% to $10.8 billion on the back of
full-year contributions from the acquired Borgata and MGM National
Harbor businesses, as well as higher revenue from casinos, rooms,
and valet and parking.

MGM Resorts posted exceptional profits in both 2016 and 2017
(compared to a $1.0 billion loss in 2015), but each year benefited
from an exceptional item; underlying profitability remains low. In
2016 the IPO of MGM Growth Properties resulted in a $1.2 billion
gain and in 2017 the company recorded a $1.4 billion tax benefit
relating to the 2017 US Tax Cuts and Jobs Act. Overall, MGM
Resorts' 2017 net income was $2.1 billion, a 70% increase on
2016.

Cash from operations increased 45% to $2.2 billion due to higher
operating income at MGM Resort's domestic resorts, partially offset
by an increase in cash paid for taxes.

Strategy

MGM Resorts International continues to make significant
investments in its resorts through newly remodeled hotel rooms,
restaurants, entertainment and nightlife offerings, as well as
other new features and amenities. In Macau, the company spent $2.5
billion on developing its operations in Macau between 2015-17,
largely on the construction of MGM Cotai, an integrated casino,
hotel, and entertainment complex. It has also made large
investments in its US operations, including $269 million on
constructing MGM Springfield, $221 million on rebranding the Monte
Carlo hotel and casino, and $195 million on finalizing the
construction of MGM National Harbor. It also carried out various
resorts' room remodels, constructed additional convention space at
MGM Grand Las Vegas, the parking garage at Excalibur, a waterpark
at Circus Circus, and various restaurant and entertainment venue
remodels. MGM Resorts International has also been actively pursuing
development opportunities in markets such as Maryland and
Massachusetts.

In 2016 MGM Resorts International opened the new 20,000 seat
T-Mobile arena in Las Vegas. The company hopes to attract a large
number of high-profile concerts and sporting events. The long-term
plan is to lure a NHL or NBA team to Las Vegas.

The company also spun off its MGM Growth Properties subsidiary
during 2016 as a real estate investment trust. MGM Resorts retains
a controlling stake in the company that was spun off to unlock
additional value in 11 hotels and casinos (it has since added a
12th).

Mergers and Acquisitions

In 2016 MGM Resorts International acquired Borgata Hotel Casino
& Spa in Atlantic City, New Jersey, from Boyd Gaming
Corporation for about $900 million. The acquisition added to the
company's growing presence in the mid-Atlantic and Northeast United
States.